Here are five of the most pressing controversies shaping the ASC landscape this year.
Former Cedars-Sinai ASC employee reached tentative settlement
A former employee of a Cedars-Sinai-affiliated orthopedic ASC has reached a tentative settlement in a lawsuit alleging that the facility prioritized profits over patient care and engaged in age-based discrimination.
Kristina Holman, who previously worked at the ASC, claimed that following the death of one of its founding surgeons, new management ramped up case volumes, leading to frequent overbooking by physicians. Holman further alleged that she was pressured to resign in her late 50s after being asked if she would consider working part-time due to her age. The terms of the settlement have not been disclosed.
Connecticut halts big ASC sale over ownership, regulatory concerns
The Connecticut Office of Health Strategy has blocked the proposed sale of Constitution Surgery Alliance, a leading for-profit ASC operator in the state, citing concerns over governance and ownership changes.
CSA had sought to sell all its membership interests to an undisclosed buyer and initially requested an exemption from the state’s certificate of need process, arguing that the transaction would not impact facility operations, personnel, or governance. However, Connecticut law considers parent companies like CSA part of the healthcare system, requiring CON approval for ownership transfers. OHS maintained that changes at the parent company level directly impact control over healthcare facilities and must be subject to regulatory oversight to protect public health interests.
Virginia ASC to pay $50K to settle disability lawsuit
Northern Virginia Surgery Center has agreed to pay $50,000 and implement programmatic changes to resolve allegations of disability and age discrimination.
The lawsuit, brought against the ASC, claimed that an older radiologic technologist was terminated and replaced by two younger, less qualified workers after requesting an extension of her medical leave following surgery. The settlement includes monetary compensation and commitments to improve workplace policies regarding disability accommodations and age discrimination protections.
USPI to pay nearly $1.5M to settle class action lawsuit
United Surgical Partners International, the ASC division of Dallas-based Tenet Healthcare, has agreed to pay $1.48 million to settle a class action lawsuit alleging violations of the Employee Retirement Income Security Act.
Filed in April 2021, the lawsuit accused USPI of permitting excessive fees for recordkeeping services and failing to offer lower-cost share classes of mutual funds in its 401(k) plan. The class action represents more than 16,600 employees who participated in the plan between April 30, 2015, and December 31, 2018. While USPI denied any wrongdoing, it opted to settle to avoid the costs and uncertainties of further litigation.
Former surgeon, ASC owner loses appeal of $100M restitution order
A former surgeon and ASC owner convicted in a $355 million healthcare fraud scheme has lost his appeal against a $100 million restitution order.
On January 16, the 9th Circuit Court of Appeals in Phoenix upheld a lower court’s ruling against Julian Omidi, MD, and his business, Beverly Hills-based Surgery Center Management. Dr. Omidi, whose medical license was revoked in 2009, was convicted on federal fraud charges related to his “Get Thin” weight-loss surgery business.
According to prosecutors, Dr. Omidi and his associates submitted approximately $355 million in fraudulent insurance claims through the 1-800-GET-THIN Lap-Band surgery program. Patients were often required to undergo sleep studies regardless of whether their insurance covered bariatric procedures. The court reaffirmed his $100 million restitution obligation to insurers and government healthcare programs.
